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MJ's avatar

Brilliant, as always Arthur, thank you for your erudite yet original and contemporary take on these crazy economic times we are living through. What's your take on Michael Howell's recent piece on "s Trump 2.0 Planning A ‘New’ Gold Exchange Standard?". This is seems to be a more nuanced version of an outright and one time USD devaluation vs Gold, and essentially a pegged system which allows for movement in fiat but caps money supply growth. I'm curious on your take, seems like something they might do and if so where does it leave other monetary debasement hedges such as BTC?

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Crypto Trader Digest's avatar

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Daniel's avatar

Excelente como siempre . Gracias 🙏

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Crypto Trader Digest's avatar

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Ched's avatar

Well articulated and love the back of envelope modelling! Also other external policies that could help with rates: NATO and others asked to pay for defense via treasuries buying and rise of stablecoins which reflexively supports more treasuries buying as collateral.

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Crypto Trader Digest's avatar

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John's avatar

Thank you Arthur. Seems this time around Tariffs will get passed to the consumer and inflation expectations likely higher. Can FED cut in that environment? Also, if equities dump 20-30% off highs, I believe we will see BTC back down to 20k or lower getting our -80% from 110k highs. Dont see it staying above 70k with a 20-30% equity move down.

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Crypto Trader Digest's avatar

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Anon's avatar

lovely note - thanks arthur

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Crypto Trader Digest's avatar

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Blanche Dubois's avatar

Thank you

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cwk's avatar

Thank you for the article. Was thinking Trump/Bessent have more tools in disposal. A conclusion in the Russian/Ukraine war would definitely have impact in energy prices as well as others+Trump's EO in boosting dom. energy supply would entail lower consumer prices -> CPI↓. Additionally, Michael S. Barr resigning and Powell telling congress that he supports reducing SLR regulations (last month) which, like you stated, will be the printer brrrrr for treasury market liquidity.

These two elements I guess would lower treasury yields and CPI thus, lower usd while also giving the Fed a reason to lower interest.

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Crypto Trader Digest's avatar

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Bjorn Solstad's avatar

No leverage is the important part now I think. Also, to be able to stay in the position while waiting for the bounce, meaning you have to have other means of income in the mean time.

Well thought through as always Arthur.

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Asad's avatar

Bad news

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Herbert Yang's avatar

Another great analysis, Arthur. Thank you! My understanding from the article is that Trump is trying to engineer a recession in a shock therapy? Because the inflation is already high, the Fed doesn't want to cut the rate. So Trump wants to force a recession to checkmate the Fed => the Fed has to cut the rate to reboot the economy => lower rate reduces both the interest and principal burden of US debt => avoid US from going into bankruptcy ... Is that right?

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sam's avatar

Nice article

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Mar 6
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sam's avatar

Hello Arthur

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Pietro Ventani's avatar

Arthur assumes the Fed’s reaction function will mirror the past, which is flawed given today’s structural inflation bias driven not only by geopolitics but also by policy. It’s therefore highly unlikely the Fed can further ease financial conditions since they’re already loose—let alone cut the federal funds rate to zero

I do agree however that Trumpt II policies may lead to significan economic slowdown,. Hence IMO the Fed will be far more focused to the development of stagflationary conditions

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Hector Sanchez's avatar

Social security is notified automatically by funeral homes when someone dies, fraud is negligible at best.

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Asad's avatar

بسیار عالی بود

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Crypto Trader Digest's avatar

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Today I'll be introducing my subsc ribers to a Huge 1nves ment chat with

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